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DOING BUSINESS WITH THE CAYMAN ISLANDS

JUNE 2007

Caribbean Export Development Agency P.O.Box 34B, Brittons Hill St. Michael BARBADOS Tel: 246-436-0578; Fax: 246-436-9999 E-mail: info@carib-export.com Website: www.carib-export.com

DOING BUSINESS WITH THE CAYMAN ISLANDS

1.

GENERAL INFORMATION

Official Name:

Cayman Islands (made up of three islands Grand Cayman, Cayman Brac and Little Cayman) 260 km² or 100.4 square metres Grand Cayman Cayman Brac Little Cayman George Town 46, 600 (July 2007 estimate) English 80.2 Total population Male: 77.57 years Female: 82.87 years 98 percent The Cayman Islands are located in the Western Caribbean. They enjoy a warm, tropical climate throughout the year. The rainy s season is from May to October and the hurricane season is from June to November. Between November and April temperatures range from 72°F to 86°F during the day and 64°F to 72° at night. Between May and October temperatures range from 85°F to 90°F during the day and 73°F to 85° at night. - 196 km² - 36 km² - 25.9 km²

Total Area: Individual Area:

Capital: Population: Language: Life Expectancy:

Literacy Rate: Climate:

Economy:

The Cayman Islands has the highest standard of living in the Caribbean. It’s GDP per capita is the 8th highest in the world. Tourism and financial services are the man economic sectors replacing turtling (hunting of turtles) in the 1970s. The Cayman Islands lie 240 km south of Cuba and 268km northwest of Jamaica. The islands claim a 200 nautical mile exclusive fishing zone and a territorial sea of 12 nautical miles. The highest point is the Bluff and the lowest point is at sea level. There is a lack of fresh water resources. The

Geography:

an Executive Council.DOING BUSINESS WITH THE CAYMAN ISLANDS Islands are located in the Atlantic Hurricane belt. There is a University College of the Cayman Islands run by Government. Matthew’s University and the Cayman Islands Law School which is a branch of the University of Liverpool in the UK. the People’s Progressive Movement won the Government by capturing nine of the 15 parliamentary seats.25 US) British Common Law and local statutes British Overseas Territory Christian with many denominations – Roman Catholic. While there has been a shift to political parties. The Executive Council is headed by the Governor and includes three appointed civil servants and four members of the Legislative Assembly elected by that body. American and British curriculum. provide higher learning. and a Legislative Assembly. Currency: Legal System: Political System: Religion: Cayman Islands dollar (worth $1. and the three appointed members of the Executive Council. Presbyterians The public school system is based on Caribbean. The Legislative Assembly comprises the Speaker. Caymanian children receive free primary and secondary education. There is no sentiment in the islands for independence. many persons contending for office still run as Independent candidates. In the May 2005 elections. As British overseas territories. Anglican. headed by a Governor appointed by Queen Elizabeth II. St. the Cayman Islands are administered by the Cayman Islands’ Government. Seventh Day Adventists.. but several churches and other organizations operate private schools from kindergarten to twelfth grade. In 2004 they felt the fury of Hurricane Ivan which caused damage to the islands and some other countries in the Eastern Caribbean. Since 2000 there have been two political parties contesting office: the United Democratic Party and the People’s Progressive Movement. The international College of the Cayman Islands. Education: Government: Political Parties . The islands are governed under a constitution which gives executive and legislative power to the Governor.

0 % (2005) Tourism. and clothing 4. building equipment.5 billion.7 percent while stock market capitalization rose US$32.8 percent. The 3.1% in comparison to September 2006. PRICES AND INCOME As at September 2007. fuel and light. the Consumer Price Index (CPI) stood at 149. Banks and Trusts registrations fell 3. Offshore Finance 93 $1.8 percent while net domestic assets rose 13.5 % (2005) 7.1 ECONOMIC DATA Table 2.3 percent.1 percent meant that average inflation for the first nine months of 2007 was 3. personal goods and services. Average prime interest rate fell to 7. medical supplies and education. Household equipment was up 8. household supplies.2 percent. an increase of 33. and miscellaneous.2 The Consumer Price Index inflation averaged 3.5 percent.7 percent.7 percent.1 percent while insurance increased 3.5 percent. Stock Exchange listings increased 25. Work permits increased 11.6 percent.7 percent by the end of the period from 8. Net foreign assets of the monetary and banking sector fell 9.5 percent as the food and household equipment indices continued to impact the overall index upwards. Combined credit to businesses and households by commercial banks rose 13. . This was due to increases in the average prices of all major groups making up the CPI.3. Merchandise imports rose 10.7 percent.0 percent.20 US = CI $1 Economic Data at September 2007 • • • • • • • • • • • 2. food 5. The value of building permits dipped six percent while the value of projects approved fell 22 percent.DOING BUSINESS WITH THE CAYMAN ISLANDS BASIC ECONOMIC DATA 2. clothing.3 percent.1 percent. New companies registration increased 15.5 percent while cruise ship passengers fell five percent. Long stay visitor arrivals increased 8.25 percent in September 2006. The CPI is a measurement of the movement of prices in an economy and takes into consideration a number of categories –food. transportation. up by 3.1 Basic Economic Facts GDP Per Head Annual Growth Inflation Major Industries Major Trading Partners Exchange Rate US $46 500 (2006) 6. personal goods and services 4.

Over the last fifteen years.4 Sep 2006 Index 135. is also an added attraction for golfers. named after a famous golfer.7 135.70 272. vessel registration.3. The Jack Nicklaus Golf course.1 135. Its financial services industry includes banking.7 154.3 2. The Cayman Islands’ financial industry came about in the 1960s and has thrived and grown by leaps and bounds ever since. companies and partnerships. The United States is the main source of visitors to the islands.9 137.3 2.9 133. Earnings from tourism have contributed to citizens. that hotel construction and other infrastructure have continuously been upgraded as both a drawing card for visitors and visitor satisfaction. Visitor arrivals in 2007 were up 8.1 131.3. captive insurance.6 135.1 STRUCTURE OF CAYMAN ISLANDS ECONOMY Tourism The Cayman Islands’ economy is dominated by tourism.2 Financial Services Industry The Cayman Islands is one of the world’s leading office financial centres. followed by Canada and the UK. the Cayman Islands has focused on building a world class specialization of the institutional business and developing strong international cooperation agreements with the United States and other countries. trusts. There are also visitors from the Caribbean as well. reinsurance. They are best known for being one of the world’s best known dive sites.5 268. The islands are also a popular destination for cruise ship passengers and many of the major passenger lines dock there regularly.4 million. Tourism in the islands is an up market industry that attracts more than one million visitors annually.7 105.5 145.9 114. which accounts for 70% of its GDP. So significant therefore is tourism to the islands.DOING BUSINESS WITH THE CAYMAN ISLANDS Table 2. Many visitors come to the Cayman Islands solely to explore the vast underwater life. mutual funds. They offer cultural facilities. structured finance and the Cayman Islands Stock Exchange.6 37. 2.2 Major Group Food Alcohol and Tobacco Housing Clothing Household Equipment Transport & Communications Education & Medical Personal Goods & Services Prices and Income Sep 2007 Index 143. The islands are not only limited to the traditional sand and sea tourism.8 percent and expenditure by visitors was US$427. .6 144.

2 percent of GDP. specifically targeting mutual funds and specialized debt securities. The sector is not as active as in other parts of the Caribbean because of the small size of the country and the emphasis on financial services. Time deposits are particularly popular. Approximately 30 percent to 40 percent of . a significant number of these are registered with the Cayman Islands Monetary Authority. The Cayman Islands stock Exchange has qualified for recognition by the United States Securities and Exchange Commission. In the area of hedge funds. investment banking. 2. 2.3 Fund Management: The Cayman islands has built up a fine reputation for fund management which in essence indicates the investment and management of large pools of finances usually pension funds.3. checking accounts and ATM services. the value of the market. Under the Mutual Fund Laws of 1996.3. income. American fund managers continue to register their funds in the Cayman Islands because of the stringent rules from the United States Securities Exchange Commission in the USA. and other areas such as the pricing of securities. was $123 billion.2 Investment Banking: This differs from the traditional banking in that emphasis is placed on analyzing financial situations. market conditions. savings. Royal Bank.2. and potential risks. on domestic or foreign entities. Funds can either be established locally. FirstCaribbean International Bank and Bank of Butterfield. or outside of the Cayman Islands in a recognized jurisdiction.1 Commercial Banks: These offer the full range of banking services including deposits. operate in the Cayman Islands. mutual funds etc on behalf of funds’ owners. stock and bond trading. 2. Government support and the absence of corporate. commercial loans and mortgages.3. payroll and withholding taxes. Advice is provided on investing in key services such as securities underwriting. The Exchange has more than 1 400 listings and market capitalization. insurance and stock market trading. mergers and acquisitions facilitation. hedge funds.4 Stock Exchange: The Cayman Islands Stock Exchange was opened in 1997. 2. funding and wealth management. insurance funds.DOING BUSINESS WITH THE CAYMAN ISLANDS The sector is aided by much desirable stability.3. so too are letters of credit. The Tortuga rum cake is the principal manufacturing item of the Cayman Islands. Based on information from the Cayman Islands Investment Fund Management (CIBIFM). Scotiabank. commercial strength. There is also the Cayman National Bank (CND) the only one that has a presence in the three islands making up the Cayman Islands. there were 8 972 mutual funds regulated by the CIBIFM. funding and arranging syndicated loans.2. capital gains.2. investments or mutual funds with more than 15 members must be individually licensed or administered by licensed mutual fund administrators. safe custody.2. CNB was voted Bank of the Year 2005 in the Cayman Islands. Its fleet of 16 ATMs is the largest in the Cayman Islands and it offers a full range of domestic and international financial services.3. The key areas of the Financial Services Industry are banking. 2. Many of the known banks.3 Manufacturing Manufacturing is a small scale industry in the Cayman Islands and accounts for approximately 3. innovative legislation.

They have established supermarkets which compete vigorously for market share among the islands’ population who has a penchant for high quality imports.DOING BUSINESS WITH THE CAYMAN ISLANDS production is exported. There are wholesalers who apart from controlling the importation of food and other items.3 Economic Growth in the Cayman Islands YEAR GDP Growth (%) 2003 2004 2005 2006 2007 2.3. .0 3.4 Agriculture Like manufacturing. there is minor production of vegetables and livestock. with the United States being the major market. which have contributed to the increase in construction activity.9 6. 2. it is still subjected to the economic factors of supply and demand.0 2. Government building and highway improvements programmes and private sector projects.3.7 3. following the robust activity undertaken to rebuild the country which experienced infrastructural damage by Hurricane Ivan in 2004. Government allocated $13 million to assist with the rebuilding. It is for this reason that construction activity experienced a slowdown in 2007. However.3. Overall exports of the Cayman Islands total about US$2 million. As such most of the agricultural produce consumed in the country. is imported. This sector’s contribution to GDP is around 10 percent. 2. Table 2.4 percent. as well as turtle farming and aquaculture. there is small scale agricultural production in the Cayman Islands.6 Wholesale and Retail Trades There is intense competition in this segment of the economy of the Cayman Islands. and the thousands of visitors who travel to the Cayman Islands every year.0 0.5 Construction Although construction is a robust sector in the Cayman Islands. are into the business of retailing. given the size of the country. Agriculture’s share of GDP is 1. The sector is driven by house construction.

8 percent by 2010/11.1 percent in 2008/9.4 EMPLOYMENT The Cayman Islands face a unique situation of having too many jobs available for the locals to fill because of the thriving tourism and financial sectors. Inflation which largely reflects developments in the USA is projected at 3.520 in 2008/9. Given this positive outlook. The passage of Hurricane Ivan in September 2004 resulted in significant damage to the islands.0 percent in 2010/11.7 percent in the two following years. however there is no income tax.2 percent in 2009/10 and 3. The tourism sector supplies thousands of jobs in the hotels and resort field.0 percent the following year and 2. following the economic recovery in the aftermath of the damage to the islands by Hurricane Ivan in 2004. businesses and other infrastructure were affected. Several homes.753 by 2009/10 and by 2010/11 respectively.3 percent in 2008/9. 3. The cost of living is very high in the Cayman Islands. Tourism. and Government services are expected to lead this growth. About one-third of the islands’ jobs are filled by foreigners. 3. The average income in 2002 was US$35 000. 3. Unemployment is under 4 percent of the labour force. making the Cayman Islands one of the few developing countries where there is full employment. and 3.5 ECONOMIC OUTLOOK The economic outlook remains very positive for the Cayman Islands. 2.DOING BUSINESS WITH THE CAYMAN ISLANDS 2. The islands are however vulnerable to external shocks. Unemployment is forecast at 3. which resulted in some economic slowdown. employment levels are expected to increase from 35. Evidence of this is the terrorist attack on 9/11. from managerial positions to simple room services and in all areas of the water sports industry. 3.6 percent while that for 2007 was just under 4 percent. offshore business services. In 2006 the Cayman Islands’ economy expanded 4.6 percent of the labor force in 2008/9. forcing the government to allocate resources to undertake renovations in the islands. Information sourced from the Government indicates that the islands’ economy is projected to grow 3.1 MARKET ACCESS ISSUES GENERAL IMPORT POLICY . to 36.

if such passengers are over the age of 18 years. These include agricultural machinery and supplies. Some items which receive duty free treatment. Once contacts are made with local agents/distributors then exporters are allowed to ship the samples. fine china and crystal) The duty on jewellery is 10%. salt beef and water) and luxury items (such as perfumes.1. one litre of alcoholic beverages. cameras. subject to certain conditions.5% to 40% for most vehicles while Hummers are taxed at 100% of their value. stamp duty at rates of between 7. If such passenger is over the age of 18 years.4 Samples and Carnets Product samples and literature represent one way of breaking into the Cayman Islands’ export market.1.1. each financial institution that operates in the islands has to pay a license fee. rice. cornmeal.5% ad valorem on legal documents dealing with valuable assets or transactions. dried peas and beans. or one case (not exceeding one litre) of beer.1 Import Taxes and Duties There are no taxes other than import duties. Grand Cayman. 3. 3.2 Taxation The Cayman Islands regulatory regime is highly favourable to foreign corporations because there is no taxation. Application for temporary importation facilities must be made to the Collector of Customs at the Administrative Office. poultry. 3. up to one litre of potable spirits or four litres of wines. 100 cigarillos.5% and 9% on transfers of real estate and stamp duty at rates up to 1. or 250 grams tobacco. The main export opportunities in the Cayman Islands are: • Food and Beverages . fresh and evaporated milk.1. certain basic foodstuffs (such as fish. are allowed. Also. Import taxes on automobiles ranges from 27. which may include a deposit of duty or guarantee to cover the duty at risk. However. potatoes. 25 cigars. macaroni. cheese. The request for temporary imports must be made before the goods are delivered from the charge of Customs. There is an import tax of between 5% and 20 percent levied on most imported goods. up to 200 cigarettes.DOING BUSINESS WITH THE CAYMAN ISLANDS 3. margarine. onions. Goods which are temporarily imported for a specified period (not normally exceeding six months) may be eligible for duty free importation. at 47 Owen Roberts Drive. lard.3 Special Customs Procedures The following goods may be taken into the Cayman Islands by travelers over the age of 18 years without incurring customs duty: 200 cigarettes or 50 cigars or 225 grams of tobacco. coffee. wheat flour.

Cayman Islands’ authorities apply the principles of the Basle Committee on Banking Supervision and comply with the requirements of the G7 Financial Action Task Force. individuals and companies are free to convert their funds into other currencies if such is desired. at the current rate of exchange on the arrival date to Cayman Islands’ dollars. 3. These include tariff heading. and Telecommunication equipment. Custom’s rules indicate that goods entering the islands must be described in sufficient details.2. country of origin. There are strict regulations for importing pets and animals. . Offshore banking transactions are relatively free from control. 3. and that the consumers are fully aware of what they are consuming.2.2 3. These requirements are necessary to ensure that goods be treated for the appropriate levying of tariffs. As regards the exportation of agricultural produce contact must be made with the Plant Quarantine Division.1 OTHER REGULATIONS AND FACTORS THAT AFFECT TRADE Foreign Exchange Controls There are no capital or foreign exchange controls in the Cayman Islands. The Cayman Islands and Jamaica have signed an agreement setting out broad guidelines for the importation of plant products from Jamaica. quantity in appropriate units and invoiced costs converted where necessary. Information on exporting to the Cayman Islands can be sourced from the Cayman Islands’ Chamber of Commerce. Samples of these products can be shipped to the islands.2 Labelling and Marking Requirements Imported goods must be properly labeled in order to enter the Cayman Islands.DOING BUSINESS WITH THE CAYMAN ISLANDS • • • • • • • • • • • • • • Foodstuffs Electrical fittings and cables Machinery and equipment Chemicals and pharmaceuticals Household products Giftware Clothing and footwear Toys Vehicle spares Stationery and consulting services Shop fitting services Motor vehicles Electricity generating equipment. subject to precaution from money laundering. Since this is the case.

3.2. dramatic. Both foreign and domestic investments are at the heart of the successful development of the Cayman Islands as a leading offshore financial jurisdiction and the authorities in the three islands have not maintained their quest to have more investments in the three islands.2 Trademarks: Trademark protection in the Cayman Islands is only available to trademarks registered in the UK and by extension to the Cayman Islands. Investment in the Cayman Islands is being driven by a new body known as the Investment Bureau. sculptured works and other qualifying intellectual works. artistic. 3. was extended to the Cayman Islands in modified form by the Copyright (Cayman Islands) Order 1965. pictoral. however. Cayman Islands’ nationals apply for CTMs. 3. Copyright applies to literary.3. The Patents and Trademark Law and the Patents and Trademark Regulation. In 2007 the islands were the recipients of close to $2 billion in foreign direct investment in the tourism and offshore financial services. The English Copyright Act of 1956. sound recording. and is not capable of registration in the Cayman Islands. Cayman Island’s legislation allows only for protection of extended UK trademarks. Community Trade Marks (CTMs) registered in the UK may also be extended. Protection is for the life of the author plus 50 years. It is understood that an international mark under the Madrid Protocol that is protected in the UK may be protected in the Cayman Islands upon application to the competent local administration.2.3 INVESTMENT POLICY As a group of small islands the Cayman Islands have gone after investments to maintain the mobility of the group’s economy policy. permit owners of patents registered in the UK to extend such rights to the Cayman Islands.2.3 Copyright: Copyright regulations are strictly adhered to in the Cayman Islands.3. the Cayman Islands have modern regulations that guide the conduct of their patents’ regime. and damages. The Cayman Islands are among the world’s top 10 countries in terms of investment flows.3 Laws of Patents. the extension expires upon the expiry date of the UK registration. Patents must be registered with the Patents and Trademark registry.3. This strict policy is aimed at ensuring that any violations are nipped in the bud while also sending a signal that privacy and protection of works are upheld. graphics. Otherwise protection is mainly by Common Law right. architectural works. The protection of the patent in the Cayman Islands dates from the time such rights arose in the UK or in the European Union and continues in force so long as the protection and rights remain in force in both areas.1 Patents: As one of the world’s leading Offshore Financial Services Centres. interdicts. delivery up. . Copyright exist automatically on the creation of a qualifying intellectual work. Attracting foreign direct investment is the cornerstone of the investment policy which has borne impressive results. UK orders for certain reciprocal protection in relation to copyrighted materials and design have also been made. The right of priority established in Article 29 (5) of the CTM Registration does not apply. Trademarks and Copyright 3.DOING BUSINESS WITH THE CAYMAN ISLANDS 3. The main remedies the Courts grant are permanent or interim injunctions. musical.2. Application may be made at anytime during the life of the UK trademark.

• be the focal point for advising the Cayman Islands’ government on policy. The mandate of the Bureau is to: • enhance the image of the Cayman islands as a location for investment. and facilitating linkages with local investors. including pre-investment and after case services. • provide investor services. • target and generate investment opportunities in accordance with official development policies of the Cayman Islands’ government. legislation.DOING BUSINESS WITH THE CAYMAN ISLANDS One of the functions of the Bureau is to coordinate resources and information to prospective investors.1 How the Cayman Islands Rank in Terms of FDI Inflows Average 2001 . It also advises Cabinet on investment issues and facilitates investments in all three islands while ensuring that potential investors are given a first rate experience when trying to relocate or to expand their offices in the Cayman Islands.2005 INFLOWS (US$ Million) 325 288 135 155 85 120 8 545 5 061 3 385 3 236 3 231 3 051 2 775 RANK ECONOMY 1 2 3 4 5 6 7 8 9 10 BVI Bermuda Cayman Islands Luxembourg Anguilla Hong Kong (China) Gibraltar Singapore Brunei Belgium . regulation and licensing changes that will enhance the investment environment. Table 3.

the entity must appoint a listing agent.1. Import permits are required for items such as firearms. 4. particular emphasis has been placed on sustainable economic development programmes. 4. 3. Wholesalers and supermarkets are the major importers of food products to the Cayman Islands..1 4. non-resident companies and exempt companies. details of auditors and other service providers. Environment. Some even assist the supermarkets in the merchandising of the products in the store. in addition to marketing and promotional support. A company may be registered in the Cayman Islands in one of several ways: resident companies. Most wholesalers represent selected brands under exclusive representation agreements. other items only require the standard shipping documents and commercial invoices. Wholesale companies supply the grocery stores. 4. the Investment and Growth Management Advisory Board were created by the islands’ Ministry of Tourism. Also there must be a statement that application has been made to list. and the provision of policy advice on the development of specific sectors of the islands’ economy. The name.DOING BUSINESS WITH THE CAYMAN ISLANDS As part of the Bureau’s mandate to stimulate and strengthen investment in the islands. must be provided. domicile of the entity and its legal form.1.2 Retail Food Distribution Channels . prefabricated buildings and plants.1 GENERAL MARKETING FACTORS IMPORT AND DISTRIBUTION SYSTEM Wholesale Food Distribution The system of distribution in the Cayman Islands is fully developed. amount and price of the issue and about valuations. The infrastructure is the most developed in the Caribbean allowing for safe and efficient handling and delivery of products. subscription and redemption procedures must be submitted as well. However. Development and Commerce.4 DOCUMENTARY REQUIREMENTS The registration of companies in the Cayman Islands is governed by the Companies Law and all entities must be registered with the Registrar of Companies. Companies can be formed with a single shareholder and with no minimum capitalization required. the hotels and the restaurants. directors’ responsibility statement. They buy the products directly from the manufacturers and receive a special price. as well as the supermarkets with the products for which they are the exclusive importers. The Bureau and its executive arm. trailers. address. To list on the Cayman Islands’ Stock Exchange. information about the nature.

Foster’s Food Fair is the largest food retailer and owns two supermarkets. and snacks. Some distributors in the Cayman Islands buy directly from the wholesalers. high standard of living. beverages.2 USE OF AGENTS AND DISTRIBUTORS Throughout the Caribbean. this has also triggered demand for American goods. However.4 PAYMENT CONDITIONS The largest importers in the Cayman Islands tend to be the oldest and most established. Imports come from Jamaica. All of them are well equipped with the latest technology – point of sales systems. the market is very open and in the process offers opportunities for exporters from the Caribbean. and Trinidad and Tobago. 4. Credit cards are accepted for the settling of transactions. seafood. . 4. and growing contacts with the Caribbean. all of this makes US imports highly affordable and demanded. They do not carry alcoholic beverages. The Cayman Islands were among countries represented at a meeting in Barbados in 2000 dealing with harmful taxation charges by the Organization for Economic Cooperation and Development (OECD). About 90 percent of the food consumed in the Cayman Islands is imported with the majority coming from the United States.DOING BUSINESS WITH THE CAYMAN ISLANDS Two major categories of retail operators participate in the retail food market: supermarkets and grocery stores. In addition. 4. dairy produce.3 GENERAL MARKET CONDITIONS Market conditions in the Cayman Islands are characterized by taste. instead buying from local wholesalers. Hurley’s supermarket and Republix are some of the well known supermarkets in the islands. the Cayman Islands’ currency is tied to the US dollar and this provides another advantage for the affinity with American goods. Each store is sectionalized with departments for meats. Coupled with the high standard of living. They buy directly from manufacturers and goods having been assembled mainly in Miami are shipped to the islands. dry goods. Since the majority of the visitors to the Cayman Islands originate in the United States. along with interactions with Barbados in the area of Offshore Financial services. produce. In the Cayman Islands the wholesalers and retailers are usually the same companies. The popularity of the American culture increases the taste for American food products. Few of the grocery stores import directly from overseas. scanners at checkout counters. They supply the smaller retailers who in turn offer sales to micro shops. research has shown that although the USA is dominant in the Cayman Islands’ food business. There are smaller grocery stores which complete for market share in the food retail business. Supermarkets account for about 90 percent of food sales to the consumers. Stores are well laid out and items expertly positioned to give an ambience of sophistication. When choosing agents in the Cayman Islands it is always advisable to deal with established companies since they have the capital and contacts to effectively market products. Grocery stores are usually of a size small than 300 square feet. and barcodes. one has the choice of exporting to a distributor or directly to retail outlets. a booming tourism sector.

Both Sight draft and Term drafts are used in the method of payments.6 $556.1 5.2 EXPORTS Exports in 2006 were C!$10.1 $496.08 billion).7 $995.7 $515. 5.1 million (US$1.DOING BUSINESS WITH THE CAYMAN ISLANDS Caymanian importers generally work on an open account system of payment with their suppliers. Consumer goods.0 $724. 5 FOREIGN TRADE DATA The total value of goods imported into the Cayman Islands in 2006 amounted CI$900.1 YEAR 2000 2001 2002 2003 2004 2005 2006 Value of Imports 2000-2006 DOLLAR VALUE (Million) $575. Interestingly enough is the fact that the export figure for 2006 represents a 122 percent increase over the amount for 2005.3 $901. intermediate goods and fuel were the principal classes of the goods imported. . Credit terms are usually 21/30/60/90 days.7 Million underlining the extent to which the Cayman Islands are not a major player when it comes to exports.1 IMPORTS Table 5. The visible trade deficit is nonetheless very large. This represented a nine percent decline from the amount in 2005.

2 Shipping Many of the well known international shipping lines do business with the Cayman Islands.7 6 6. the largest of the three islands.5 $2. Thompson Shipping and Cayman Freight Shipping Services Limited.3 $4. . British Airways and Air Jamaica. There are more than 55 weekly flights into the Cayman Islands.1.1.1 Airport The main passenger airport in the Cayman Islands is the Owen Roberts International Airport. Cayman Airways provides inter-island services between the three islands.2 Value of Exports 2000-2006 YEAR DOLLAR VALUE 2000 2001 2002 2003 2004 2005 2006 $3. offered by Cayman Airways Express. USAir. Other airlines serving the Cayman Islands are American Airlines. It is located in Grand Caymans. 6. Delta.1 TRANSPORT AND COMMUNICATIONS FACILITIES TRAVEL AND COMMUNICATION The Cayman Islands boast excellent travel and communications infrastructure for islands their size. ground travel and shipping are well established providing adequate transportation facilities. Air travel. Many of the services originate out of Miami.2 $3.1 $7. Northwest.DOING BUSINESS WITH THE CAYMAN ISLANDS Table 5.3 $4. including 28 flights each week between Miami and Grand Cayman with feeder services to Cayman Brac and to Little Cayman.These include Kirk Freight Line. There is an airport as well in Cayman Brac and with the Owen Roberts Airport.8 $10. 6. Little Cayman is served by daily inter island flights. Continental. Air Canada. they serve as the Cayman Islands’ main ports of entry for visitors.

50 per person.1. restaurants and hotels. Commercial banks open from 9 a. Car rental firms are located at the Owen Roberts International Airport. The fare is US$2 per person.m. It operates between George Town and surrounding areas. Saturdays 9 a.m. On Saturdays the opening hours are from 9 a. The main bus depot is located in George Town which serves as a transit point for other locations.m. on Friday.5 Car Rentals These services are widespread with charges ranging from at least US$30 a day to US$40 a day. gas stations. 6. Most car rental firms offer American and Japanese vehicles. The fare is US$2. 6.4 Taxis Taxis complement the bus service in two of the Cayman Islands. to 5 p. They are limited in Cayman Brac and non existent in Little Cayman.m.m.3 Bus Service The Cayman Islands boast a reliable and inexpensive bus service. Most businesses in the Cayman Islands close on a Sunday.30 a. Monday to Thursday.2 BUSINESS HOURS Monday through Friday 8. those establishments which are opened on Sundays include pharmacies. Georgetown and at some hotels.m.DOING BUSINESS WITH THE CAYMAN ISLANDS 6.1.m. and 9 a.m. Along with rental fee.m. From George Town buses travel to Bodden every 30 minutes between 6 a. Sunday through Thursday and until midnight on Fridays and Saturdays. The bus from George Town to East End and to North Side operates hourly between 6 a. and 11 p.30 p. The service is more concentrated in Grand Cayman. Rates are based on a maximum of three rides. The firms offer unlimited mileage. and 9 p.m. to 1 p. The minimum fee is CI$4 for the first mile.m. to 4. free pick up and drop off and free airport transfers.m.Saturday through Thursday. For Government Departments the opening hours are 9 a. 6. to 5 p. to 1 p. Buses operate on eight different routes that are color coded for easy recognition.m.m.1.75 for each additional ride.m to 4 p. and until midnight on Fridays.m. However. 6.3 PUBLIC HOLIDAYS (2008) January 1 New Year’s Day January 28 National Heroes Day February 6 Ash Wednesday March 21 Good Friday March 24 Easter Monday May 19 Discovery Day June 16 Queen’s Birthday . drivers will need to purchase a temporary driver’s license. and CI$1. Monday through Friday.

The visitor is required as well to have enough funds to maintain himself while in the islands..DOING BUSINESS WITH THE CAYMAN ISLANDS July 7 December 25 December 26 Constitution Day Christmas Day Boxing Day All Government offices and most retail establishments are closed on these days. 7. 6. either by the individual if he/she is to be self employed.1 7. However. 6. nationals of the USA.6 ELECTRICITY 110 Volts or 60 hz are the electricity system in use in the Cayman Islands. or by the employer with a position to fill. If you plan to transit through the USA on your way to the Cayman Islands you will require an American visa. Dependents will not be allowed to work without their own licenses. Box 1000 . Canada. entering the Cayman Islands do not require a visa. A work permit must be applied for and obtained before arriving. and certain other countries do. ounces etc. pounds. 6.1.4 ENTRY REQUIREMENTS Nationals of Commonwealth countries. A work permit entitles the holder and named dependents (normally limited to three) to live in the islands during the term of the work permit or specific employment. A visitor must hold a return airline ticket to his/her country of origin or legal residence.2 ADDRESSES APPENDICES Manufacturers and Commercial Organization Cayman Islands Chamber of Commerce P. 6.7 STANDARD TIME The Cayman Islands’ standard time is five hours behind GMT 7. A casual visitor to the Cayman Islands is not allowed to take up or to solicit employment while in the islands.5 WEIGHTS AND MEASURES The Cayman islands use the British Imperial system of miles.O.

caymannetnews.ky Cayman Islands Department of Tourism Leeward 2.cimoney.O.ky Website: www.DOING BUSINESS WITH THE CAYMAN ISLANDS Grand Cayman KY1-1102 CAYMAN ISLANDS Tel: (345) 949-8090 Fax: (345) 949-0220 E-mail: info@caymanchamber.com.caymanchamber.investcayman.ky 7.com .gov.caycompass. • George Town.1 Newspaper and Magazines • Caymanian compass.O.Box 10052 80e Shredden Road Elizabethan Square Grand Cayman KY1-1001 CAYMAN ISLANDS Tel: (345) 949-7089 Fax: (345) 949-2532 Website: www. Box 10087 Grand Cayman. • http:www. • Grand Cayman. Regatta Office Park West Bay Road.com • Cayman Net • George Town • http: www.ky Website: http://www.ky Cayman Islands Monetary Authority P. Grand Cayman CAYMAN ISLANDS Tel: 345-244-1259 345-949-0623 Fax: 345-949-4053 Cayman Islands Investment Bureau Cayman Corporate Centre Hospital Road 1st Floor P.1. KY1-1001 CAYMAN ISLANDS Tel: (345) 945-0943 Fax: (345) 945-0941 Email: info@investcayman.

7. 7. .1.5 Shipping Services The Cayman Islands’ Shipping Registry is responsible for the enforcement of the applicable international shipping.1. Others are within striking distance of that administrative block.3 Banking Systems Although individual financial organizations have their associations the Cayman islands Monetary Authority acts as the regulator and the main body which sets standards and ensures that they are observed.4 Government Offices Several of the Ministries of Government in the Cayman Islands are located in the Government Administrative Building. George Town.1.1.2 Industrial Business Consultants These cover a wide assortment of businesses and information is obtained from the Cayman Island Chamber of Commerce and a web site Guide to Cayman Business Directory. 7. . Information on shipping services and contacts can be secured from the Registry. Grand Cayman.DOING BUSINESS WITH THE CAYMAN ISLANDS 7.